On reserve land.
Run out of Toronto.
This is one big farming operation. A 1million acre operation that could rival the largest corporate farms in the world, and it’s going to happen right here in Saskatchewan.
A news conference will be held in Saskatoon Thursday, and according to the Globe and Mail we’ll get information on 17 first nation bands leasing their land at market value to a new entity called One Earth Farms Corporation.
It will focus on sustainable, environmentally responsible land use, hire and train aboriginal workers, and provide first nations an equity stake in the company.
It will be funded with over $27 million from Toronto-based Sprott Resources Corp.
The farm, spread out in pods of about 20 thousand acres will encompass both cattle ranching and grain and oilseed cultivation.
What could possibly go wrong?
(I should note that CEO Kevin Banbrough has one of his economic fundamentals in place – off farm income.)
Or… perhaps they plan to farm carbon credits?
As I recall, Reserve land can not be seized to pay debt nor thus can it be used for collateral.
Sask. Indian bands hiring people from Toronto to help them farm successfully…. this is not going to end well.
Our grandfathers and great grandfathers who settled Saskatchewan did subsistence farming with 160 acres. They had to put their land up as collateral just to buy the wood to build a house and barn.
if you negative posters would take the time to understand the arrangement, and the successful business history of kevin bambrough, eric sprott, i think you might have a different opinion of the outcome. these are not stupid people. time will tell
Well I truly hope it works. Because its not my money. I’m really looking forward to see how this works however. The money is no where enough to start up an opertation of that size. I believe that machinery can’t be seized on rez land or even band property can’t be seized. I seem to recall a story about that. A garage being owned over $100,000 and the owner seized their school buss. The natives took it all the way to the supreme court and won. You would have thought it would be easier to pay their bill. So pretty sure everything will have to be cash on the barrel. In my country the local reserve was the second largest deliverer of grain. But they fired their “non-native” farm manager. Cause they were tired of being told what to do by him. The next year the number of bushels was cut in half. The next the same and in the third year only sold 8000 bushels and nothing by the fourth year. GOOD LUCK TO ALL!!!!!!!!
This has allready failed before it has even had a chance. Poor managment allready, being a farmer I know my fixed costs per acre to produce a crop. They are between $200 AND $300 dollars per acre. Since this buisness is not establised the cost will be double, Even at $200 per acre $27 million will only be enough capital to pay the land rent for one year. There will be no equipment, fertilizer, chemical, seed, or labour. They will be short a measily $162 million dollars just to get the crop in the ground. I dont know how long it will take for everyone to figure out this is just a large scam, it is great for all other farmers they just took 1 milion acres out of production. Great day to be a farmer.
Davey Richardo, these may be smart people, but Mother Nature doesn’t give a fig about their or anybody elses credentials.
This ain’t Bay Street they are dealing with.
And if they don’t have a feel for the weather and its cycles, Mother Nature will laugh even harder.
A Masters in Economics, or fill in the blank _______, means SFA to the Great White Swather.
If it was as easy as some people think it is, why don’t the Indians just hire somnebody to run their farm and cutout the Big Ciddy guys?
Who needs them?
Larry Ruud, president of One Earth, said the company will benefit from numerous economies of scale. As the largest buyer in the Canadian market, it will be able to negotiate favourable prices for expensive inputs such as fertilizer, seed and chemicals. It will also be able to move labour and equipment across the prairies at seeding and harvest time, and will have crops in several growing areas, which provides some protection against bad weather.
Also note Kate’s reference in her post to possible carbon credits, fitting in with Rudd’s history.
Larry Ruud joined Viterra’s Board of Directors in March 2008 and serves on its Audit and Compensation Committee. He is a partner with Meyers Norris Penny LLP and provides farm management consulting services in Alberta and B.C. He owns and manages a farm south of Vermilion, Alberta. Mr. Ruud holds a Masters of Science Degree in Agricultural Economics and a Bachelor of Science Degree in Agricultural Economics from the University of Alberta. Mr. Ruud was recently appointed President and CEO of One Earth Farms Corporation.
he sure doesn’t sound stupid or unqualified to me. why does having an investor with a Bay Street address automatically make this project doomed?
One Earth Farms = Scorched Earth Farms